National Express quitting Australia

Friday 3 September 2004 16:21 BST

TRANSPORT group National Express has fallen out of love with Australia. The company today signalled its final departure from its overseas outpost, regarded internally as a 'small business a long way away'.

It is selling bus operations in Brisbane, Melbourne and Perth for £27m, a £19m profit, leaving it with one operation valued at £33m in Sydney which is to be sold next year.

The deals come after a £135m hit on its less-than-orderly departure from trains and trams in Victoria two years ago.

Group chief executive Phil White said: 'Our remaining Australian bus operations, based in Sydney, are currently participating in the Bus Industry Reform which is being carried out by the New South Wales government.'

In 2003, the three bus operations reported sales of A$85.7m and operating profit of A$7.3m.

All necessary government approvals have been granted or are being finalised and completion is expected to take place on 1 October.

Proceeds from the sale will be used to cut the group's net debt.

'The board will review the carrying value of the remaining Australian net assets of £33m by the year end,' the company said.